Fresenius to Pay $83.6M to Settle Medicare Fraud Case
August 27, 2011 by casey
On May 26, 2011, the US Department of Justice announced the settlement of a whistleblower case that found three medicare companies guilty of fraudulent billing to the Medicare program. Renal Care Group (RCG), Renal Care Group Supply Company (RCGSC) and Fresenius Medical Care Holdings, Inc. (FMC) will pay $82,642,592 plus costs for improper billing for home dialysis supplies and equipment from 1999 to 2005.
The Court’s orders in this case discuss the concerns of multiple RCG employees who complained about the operation and Medicare billing activity of the RCGSC, including one regional manager who wrote, “I do not wish to go to jail,” and felt the company’s actions “were not in the best interests of patients,” after receiving a corporate directive about converting patients into the RCGSC.
The government’s complaint alleged that between January 1999 and December 2005, RCGSC submitted claims to the Medicare program for home dialysis supplies provided to ESRD patients for reimbursement of the supplies and equipment. All of these claims, as well as related claims for support services rendered by RCG dialysis clinics were false because the defendants were prohibited from and not qualified to bill Medicare for these home dialysis patients.
Under federal law, the Medicare program pays companies that provide dialysis supplies to ESRD patients only if the companies that provide the supplies are truly independent from dialysis facilities and the ESRD patient chooses to receive supplies from the independent supply company. Defendants set up a sham billing company, RCGSC, that was not independent from RCG. Further, RCG interfered with ESRD patients’ choice of supply options, requiring patients to “move” to RCGSC. Even after RCG employees raised concerns and industry competitors closed their supply companies, RCG kept RCGSC open because of the illicit revenue it created.
Renal Care Group argued that they did not violate Medicare rules because of industry standards and certain disclosures to Medicare that RCG claimed to have made. However, the Court rejected those arguments because of the clarity of the Medicare requirements and RCG’s reckless disregard for Medicare’s legal mandates. The Court stated that the “Defendants cannot effectively set aside those commands by their cited interactions with Medicare officials.” The Court further noted that RCG failed to heed the advice of the company’s lawyers when operating the supply company, and also discussed an internal audit of the supply company that found that 100% of the company’s files were missing information that Medicare required for billing.
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Dyncorp and Sandi Group Pay $8.7M to US for Fraud in Iraq
August 27, 2011 by casey
DynCorp has agreed to pay the United States $7.7 million to resolve allegations that it submitted inflated claims for the construction of container camps at various locations in Iraq. TSG agreed to pay $1.01 million to resolve allegations that it sought reimbursement for danger pay that it falsely claimed to have paid its U.S. expatriate employees working in Iraq.
The lawsuit was initially filed by two former TSG employees under the qui tam or whistleblower provisions of the federal False Claims Act, which permit private individuals, called “relators” to bring lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant.
As a result of the settlement, the two, Drew Halldorson and Brian Evancho, will receive up to $481,710 as their share of the government’s recovery.
“The hard work of stabilizing Iraq is challenging enough without contractors and subcontractors inflating the cost of rebuilding by making false claims at taxpayers’ expense,” said Tony West, Assistant Attorney General for the Civil Division. “This case demonstrates that the Department of Justice will pursue these cases that undermine the integrity of our public contracting process.”
“False claims filed by contractors have been a problem in Iraq,” said Stuart W. Bowen Jr., Special Inspector General for Iraq Reconstruction (SIGIR). “While SIGIR continues to pursue a number of allegations in this regard, I am pleased to see that today one of those cases has come to just resolution. I commend the Department of Justice prosecutors, the Department of State investigators and my SIGIR team for working together to achieve this important victory on behalf of the U.S. taxpayers.”
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
German Security Company Pays U.S. 6.5M Euros to Settle False Claims Allegations
August 27, 2011 by casey
Under the terms of the settlement agreement, Securitas paid the United States the 6,529,042 Euros to resolve its potential liability under the False Claims Act, other anti-fraud provisions and the common law. Securitas also agreed to dismiss its own claims in the Court of Federal Claims against the Army, totaling 4,449,658 Euros (approximately $5.7 million).
“We won’t tolerate military contractors who overcharge the American taxpayers for services,” said Tony West, Assistant Attorney General of the Justice Department’s Civil Division. “This case illustrates that the United States will pursue the full range of potential remedies for false or fraudulent claims to ensure defense contractors are dealing fairly with the American people.”
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Verizon Pays $93.5 Million for Overcharging Government
August 27, 2011 by casey
Verizon subsidiary MCI Communications Services Inc. dba Verizon Business Services is alleged to have invoiced GSA for a variety of federal, state and local taxes and surcharges in violation of the contracts or applicable regulations in connection with the FTS2001 and FTS2001 Bridge contracts. The department’s joint investigation with GSA’s Office of the Inspector General (OIG) found that Verizon and MCI submitted false claims under the contracts for the reimbursement of property taxes, common carrier recovery charges and unallowable surcharges, charges that are not directly reimbursable under the FTS2001 contracts.
“A government contract is not a blank check,” said U.S. Attorney Ronald C. Machen Jr. “Contractors who overbill the government will be aggressively pursued and required to make the taxpayers whole. This $93 million recovery should make contractors realize that we are firmly committed to ensuring the integrity of corporate billing practices with respect to government programs.”
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
